SSAM III.C Community Based Care Payment System

IV. D Other Provider Payment Related Procedures

5/1/11

1. Issuance of Checks

Checks issued to homecare workers are printed each night Monday through Friday. The only exceptions are the last paid working day of the month and state holidays. Checks printed on Friday night will be mailed the following Monday unless Monday is a holiday, then they will be mailed on Tuesday.

Direct Deposit payments are processed the same as checks. Deposits to a provider's account are subject to a two-three-banking day delay. The issuance date (the date the monies can be deposited to the account) is shown on both the HINQ and HINV screens, as well as the provider's Remittance Advice.

For community based care providers, the check run is the first of every month except for holidays and generally every Wednesday after.

2. Garnishments

Providers’ earnings are occasionally garnished by court order. The court determines the amount to be garnished and directs the State of Oregon to withhold funds from the provider’s monthly earnings. Garnishments are processed by the DHS Office of Financial Services upon receipt of the court order. Garnishments can be checked by accessing the SLIA screen. The appropriate entry is as follows:

SLIA,P,Provider Number

Contact address and phone number. The DHS Office of Financial Services, Accounts Receivable Unit, handles all court ordered garnishments for SPD providers. If a provider has questions about a court ordered garnishment they can contact (503)947-5126 or toll free @ 1-866-631-0745. The address for garnishments is:

DHS Office of Financial Services
Accounts Receivable Unit
500 Summer ST NE-E79
Salem, OR 97301
Attn:Garnishments

3. Employment Verifications

Financial information should not be provided to individuals or businesses without the written consent of the provider. An exception would be a request from the State of Oregon Department of Revenue or the Department of Justice Division of Child Support. Most businesses are accustomed to providing a release of information and are willing to fax one to you.

Financial institutions, credit agencies, and various other businesses and individuals frequently ask for the verification of providers’ wages and yearly earnings. This information can be handled in the local office (with provider's written consent) rather than forwarding to Central Office.

4. W2s and 1099s

W2s and 1099s are mailed to providers in January. The mailing addresses are obtained from the provider files. If they are returned to the SPD Provider Payment Unit and the correct address can be determine, the forms are re-mailed to the providers. The provider can call 1-503-947-5138 to request a replacement W2 or 1099 at any time. If a provider reports an error on their W2 or 1099, contact the SPD Provider Payment Unit.

5. Replacement of a Lost Check

Verify that a check was issued, and determine the issuance date and check number. The information can be obtained from the appropriate HINQ screen for HCWs, or the PESM screen for adult foster home providers.

Check the RCIQ screen to determine the status and amount of the check. Three codes are used on the RCIQ screen. They are CA (canceled), OS (outstanding) and PD (paid). If the check is listed as OS it can be replaced; however, it cannot be replaced until five postal delivery days after the date the check was mailed or 10 Postal days, if the provider had an address change. If it shows canceled, it has been manually canceled by the SPD Provider Payment Unit, contact them for reason for cancelation. If it has been paid, the Business Security Unit can provide a copy of the front and back of the check to the local office. The office would then discuss the matter with the provider.

To replace a check, the payee should complete an Affidavit Concerning Lost Check form (DHS 138A). The local office completes the top shaded portion of the form including the payment alert number. That number is obtained by telephoning the Business Security Unit/Forgery Services at (503) 945-5640 or (503) 945-5639. If the check is outstanding, call the SPD Provider Payment Unit or Business Security Unit to determine if the check was returned by the post office and is at the SPD Provider Payment Unit.

Please make sure a mistake is not made on the AFS 138A; if so the form must be redone. Do not cross out, write over or whiteout information. The form must be notarized. Call the Business Security Unit/Forgery Services for the payment alert #.

The original DHS 138A must be mailed immediately to the Business Security Unit/Forgery Services, at 500 Summer St. NE E85, Salem, OR 97301-1080. A copy should be kept in the local office.

Once the necessary information is received by the Business Security Unit/Forgery Services, they will direct the SPD Provider Payment Unit to start the check replacement paperwork.

The SPD Provider Payment Unit and the local office have a responsibility to find and return the outstanding check. If obtained, checks must be returned to the SPD Provider Payment Unit.

Do not submit check replacement requests for more than one check for the same provider on the same day. Send them a day apart. According to Oregon Revised Statutes, accounting can only issue one check per day per individual.

6. Replacement of Destroyed, Not Received, & Stolen Checks

SPD relies upon DHS Financial Services to issue replacements for provider checks that are destroyed, lost, not received or stolen (forged). By law ORS 293-475, lost or not received checks can be replaced five postal days from the issued date. (10 days if the provider had an address change and did not inform SPD in a timely manner.)

Do not submit check replacement requests for more than one check for the same provider on the same day. Send them a day apart. According to Oregon Revised Statutes, accounting can issue only one check per day per individual.

Destroyed Checks. Complete an Affidavit Concerning Lost Check form (DHS 138A). Mark the “Destroyed” box on the affidavit and follow the procedure for “not received" checks. NOTE: If a check is destroyed but still salvageable, stamp “cancel” on the check then mail to SPD Provider Payment Unit, SPD, PO Box 14960, Salem, OR 97309-5045. DHS Financial Services will rewrite the check. No affidavit is needed.

Not Received Checks. The provider needs to complete an AFS 138A. Follow the instructions listed in III-D-5.

If the original check is received before the replacement check, the original check may be cashed. The replacement check should be returned to the local office immediately and returned to SPD Provider Payment Unit, PO Box 14960, Salem OR 97309-5045. If both the original and the replacement checks are received on the same day, DHS prefers that the replacement check be cashed and the original check be returned to SPD Provider Payment Unit.

Stolen Checks (Paid status on RCIQ). Request a copy of the check by e-mail or phone from the Business Security Unit/Forgery Services. This will take 1 or 2 days to obtain. A copy of the check will be emailed to the local office who can then show it to the provider.

Note: Please inform the payee that if there are any questions as to authenticity of the payee’s signature, a handwriting analysis will be requested from the Oregon State Police before the check will be replaced. This takes approximately six weeks.

If the payee did not endorse the check, follow the procedure for “not received” checks, and indicate that a forgery packet is needed when submitting the affidavit. If the payee did endorse the check, send a follow-up e-mail showing that the replacement check is no longer needed.

7. Forgery Packets

The forgery packet is provided to the branch by the Business Security Unit/Forgery Services, when the original check is returned from the State Treasury as a paid instrument.

The forgery packet information is used when the original check has been cashed and to facilitate recovery actions by the state when a fraud or forgery determination is made.

A forgery packet includes:

AFS 980 Interoffice Memo
AFS 597 Handwriting Exemplar (See Note)
AFS 163 Affidavit. Claimant's Endorsement Forged
Photostat copy of the original paid check, front and back
Postal Lost Check Report (for checks not received)
Signature page

Note: AFS 597 will not need to be completed if the payee has completed one within the last six months.

The forgery packet must be completed and returned to the Business Security Unit/Forgery Services as soon as possible. If forgery packets are not returned within 20 days of their receipt to the local office, the Business Security Unit/Forgery Services will not pursue any action thru treasury, in many cases, this can result in an overpayment against the payee, if the check has been replaced.

Upon receipt of the forgery packet, the branch will:

Have the payee review a copy of the paid original check and acknowledge whether or not the endorsement on the check is his/hers.
Have the payee complete the AFS 980:
1. If the payee acknowledges the endorsement:
  1. Payee must so indicate on the AFS 980 and sign his/her name in the signature area.
  2. If a replacement check has been issued, complete an AFS 284 and forward it to the Business Security Unit/Forgery Services with the packet.
  3. The balance of the forgery packet is not necessary.
2. If the payee does not acknowledge the endorsement:
  1. Payee so indicates in the designated area on the AFS 980 and completes the entire forgery packet
  2. Return the forgery packet to the Business Security Unit/Forgery Services.
  3. If the payee is no longer available to complete the forgery packet, so indicate on the AFS 980 and return the packet to the Business Security Unit/Forgery Services. Also note if the case has been closed and the date of closure.

On active cases where there is difficulty in getting the payee to come to the branch to complete the forgery packet, a "hold" on the payee's next check is suggested. This should result in the payee making an appearance in the branch office to review and complete the forgery packet.

Subsequent Action. The Business Security Unit/Forgery Services will follow up on all payment alerts. If the original check is not paid within 60 days, the file will be closed.

If the original check is returned to the local office, check to see if this check has been replaced. If a payment alert and a replacement check have been done, then the original check must be returned to SPD Provider Payment Unit. If no payment alert and replacement have been done, the possibility is that the check still belongs to the payee. Notify the Business Security Unit/Forgery Services or SPD Provider Payment Unit immediately to confirm that the check is still due the payee. Only after unsuccessful attempts to deliver the check to the payee should the check be returned to SPD Provider Payment Unit. If the original check is given to the payee after a payment alert has been called to the Business Security Unit/Forgery Services and there was no replacement issued, notify the Business Security Unit/Forgery Services or SPD Provider Payment Unit immediately to stop the replacement procedure.

IMPORTANT: If, after notifying the the Business Security Unit/Forgery Services on the DHS 138A and the payment alert that no replacement will be issued, a replacement is in fact issued, the Business Security Unit/Forgery Services must be notified immediately.

8. Returned Provider Checks

To cancel a provider check, send it to the address below along with the check stamped “canceled” and the reason the check is being cancelled. Do not retain in the local office; send the checks when they are received. Keep a copy in the local office.

Senior and People with Disabilities
Provider Payment Unit
PO Box 14960
Salem, OR 97309-5045